Bank of America, N.A. v. Unknown Successors of Lewis

2014 OK CIV APP 78, 336 P.3d 1034, 2014 Okla. Civ. App. LEXIS 56, 2014 WL 4976131
CourtCourt of Civil Appeals of Oklahoma
DecidedJune 17, 2014
DocketNo. 111,634
StatusPublished
Cited by10 cases

This text of 2014 OK CIV APP 78 (Bank of America, N.A. v. Unknown Successors of Lewis) is published on Counsel Stack Legal Research, covering Court of Civil Appeals of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bank of America, N.A. v. Unknown Successors of Lewis, 2014 OK CIV APP 78, 336 P.3d 1034, 2014 Okla. Civ. App. LEXIS 56, 2014 WL 4976131 (Okla. Ct. App. 2014).

Opinion

P. THOMAS THORNBRUGH, Judge.

1 Bank of America, N.A. (Bank), appeals the judgment of the district court that Bank's mortgage did not include a strip of land claimed by Padgett Development Company, LLC (PDC). Bank also appeals the court's fee award to PDC as a prevailing party in Bank's foreclosure action. We affirm the decisions of the district court.

BACKGROUND

T2 The relevant facts begin in July 1976, when non-parties Custer and Eulah Sandlin conveyed the following property by warranty deed ("Sandlin Deed") to Duane Woodliff and Richard Hutton:

All that part of the NW/4 in Section 10, Twp. 11N Range 126, lying East of the center line of the County Road running North and South between the NW/4 and the NE/4 of said Section 10, Twp 11 N. Range 12E, containing six (6) acres more [1038]*1038or less [excepting minerals and rights of ingress and egress].

The deed is ambiguous, in that it transfers property in the NW/4 that lies east of a county road that runs between the NW/4 and the NE/4 of Section 10. However, if the county road runs exactly between the NW/4 and the NE/4 of Section 10, no part of the NW/4 can lie east of the county road.

13 A later deed again refers to a portion of the NW/4 that lies east of the county road. However, a September 1988 warranty deed from the Woodliffs to the Woodliffs as husband and wife elaborates that the road actually runs across the "East Half of the East Half of the East Half" of the NW/4, not exactly on the border between the two quarter-sections. No party has raised this issue, and all are in agreement that the property in question lies between the county road and the east edge of the NW/4.

T4 In June 1981, Richard Hutton1 conveyed his interest in this property to Duane Woodliff, and also conveyed a larger adjoining tract of 150 acres in the NE/4 of Section 10. We will refer to these two combined properties as the "Woodliff Property." The Woodliff Property was then transferred within the Woodliff family, first to Duane and Eloise Woodliff as joint tenants with right of survivorship, then to the "Duane A. Woodliff Revocable Trust." Duane Woodliff stated by affidavit that he had always believed that he owned the property down to the bottom of the NW/4 described in the Sandlin Deed; that the property was fenced as a single parcel before he obtained it, and he had continued this fencing; and that he was in exclusive possession of the property from 1976, and no other party had attempted to exercise control over it.

15 In 2007, PDC began negotiations to purchase the Woodliff Property. During the purchase process, PDC sought a title opinion, and the examiner noted that title to part of the property described in the Sandlin Deed was uncertain, in that one Sara Jane Lewis might also have an overlapping deed to the property described in the Sandlin Deed. Duane Woodliff contacted Lewis, who, on January 28, 2008, signed a quitclaim deed transferring the following property to PDC ("Lewis Quitelaim"):

That part of the South Half of the Southeast Quarter of the Northwest Quarter (S/2 SE/4 NW/4) lying East of the Center of the County Road running North and South across said tract, in Section Ten (10), Township Eleven (11) North, Range Twelve (12) East of the Indian Meridian, Okmulgee County, State of Oklahoma

This deed transferred the southernmost portion of the strip of property in the NW/4 described in the Sandlin Deed. The same day, the Woodliff Revocable Trust transferred the Woodliff Property to PDC by warranty deed. '

16 On January 80, 2008, however, Sara Jane Lewis also mortgaged the following property to Countrywide Bank FSB ("Countrywide Mortgage"):

The S$/2 of SE/4 of NW/4 of Section 10 Township 11 North Range 12 East of the Indian Meridian, Okmulgee County, State of Oklahoma

This situation is roughly depicted by the following diagram (not to scale):

[1039]*1039[[Image here]]

17 The record reflects that Lewis transferred the part of the 8/2 SE/4 NW/4 that lay east of the county road to PDC on January 28, 2008, but also mortgaged 8/2 SE/A4 NW/4 in its entirety to Countrywide Bank on January 30, 2008. This mortgage is the source of the current dispute.

T8 Sara Jane Lewis evidently died in February 2009, and no payments were made on the mortgage after March 2009. In October 2009, Bank, as successor to Countrywide, sued to foreclose on the Countrywide Mortgage. In January 2010, Bank filed an amended petition naming PDC as a party and requesting foreclosure against any interest of PDC. PDC answered and counterclaimed that it owned the part of §/2 SE/4 NW/4 east of the road, both by virtue of the Lewis Quitclaim and by virtue of Duane Woodliff's adverse possession of the disputed property under color of title since 1976.

9 Both parties filed motions for summary judgment. The court granted judgment to PDC. After the district court rendered judgment in its favor, PDC filed an application for attorney fees. The application stated the Burk factors and included an affidavit of time spent on the matter. It did not identify a statutory basis for fees. Bank replied, arguing that PDC had failed to cite a statute allowing fees in this matter. The district court ruled on April 3, 2018, that PDC was entitled to fees, and the amount of fees for hearing on May 8, 2018. The next record order notes that, on May 8, PDC appeared through counsel, but Bank did not appear. The order notes that Bank had "agreed to fees in the amount of $3,928.75." Bank appeals both the court's grant of summary judgment and its award of fees. This court held oral argument on the fee issue on March 4, 2014.

STANDARD OF REVIEW

¶10 “Summary judgment is proper only when it appears that there is no substantial controversy as to any material fact and that one of the parties is entitled to judgment as a matter of law." Jordan v. Jordan, 2006 OK 88, ¶ 17, 151 P.3d 117. We review a grant of summary judgment de novo. Young v. Macy, 2001 OK 4, ¶ 9, 21 P.3d 44. On appeal of the legal basis of a fee award, this Court assumes "plenary, independent and non-deferential authority to reexamine the trial court's legal rulings." Mitzner v. Poage, 2009 OK CIV APP 100, ¶7, 229 P.3d 1270.

ANALYSIS

I. BANKS EQUITABLE SUBROGATION CLAIM

T11 Bank argued that it retains an interest in the property quitelaimed by Lewis pursuant to the principle of equitable subro-gation because there was a mortgage on the property prior to the Countrywide Mortgage, and the property transferred by the Lewis [1040]*1040Quitelaim was subject to that prior mortgage interest. Bank then argued that Countrywide had paid off this previous mortgage as part of the new mortgage, and Bank as sue-cessor, became subrogated into the position of the previous mortgagee. Therefore, Bank argued, the quitelaimed property was subject to the Countrywide Mortgage, even though it was not made until after the quitclaim was signed.

1 12 The general principles regarding equitable subrogation of liens are stated in Mortgage Electronic Registration Systems, Inc. v. U.S. ex rel. Internal Revenue Service, 2006 OK CIV APP 45, ¶15, 134 P.3d 913. A lender who:

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Cite This Page — Counsel Stack

Bluebook (online)
2014 OK CIV APP 78, 336 P.3d 1034, 2014 Okla. Civ. App. LEXIS 56, 2014 WL 4976131, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bank-of-america-na-v-unknown-successors-of-lewis-oklacivapp-2014.